The Government has cut the plug-in car grant from £2,500 to £1,500 for eligible low-emission vehicles.

The maximum RRP (including VAT and delivery fees) for eligible cars has now dropped from a maximum of £35,000 to £32,000. 

Hybrid electric cars, which have CO2 emission of less than 50g/km and could travel at least 112km (70 miles) without any emissions are also no longer eligible.

For small vans, 2.5 tonnes gross vehicle weight (GVW) or less, the grant has dropped from a maximum of £3,000 to £2,500.

For larger vans, 2-3.5 tonnes GVW, the grant has also been reduced, from a maximum of £6,000 to £5,000.

There are no changes to grant rates for vehicles over 3.5 tonnes.